Using 1981-99 panel data on Indonesian manufacturing establishments and a survey of 2000 top business in Indonesia, Indonesia's Financial Liberalization analyses the consequences of financial liberalization on investment and allocation of credit, noting differential effects depending on size of firms, organizational form, and other categorizations.Using rigorous econometric tools, the conclusion derived is that although financial liberalization has increased borrowing costs, particularly for smaller firms, it has widened access to finance. The move from administrative-based to market-based allocation of credit has increased credit flow to firms that are more efficient, and these firms consequently have a higher concentration of investment.

Credit and debt are practical concerns of all times and places. They are also increasingly important topics in economic history and the social sciences, from Marcel Mauss and the anthropology of the gift to the urgent quest for understanding of today's global credit crunch. This volume brings together eight essays on credit and debt in the history of Indonesia, where for centuries debt and debt bondage played central roles in the organization of society, and where efforts to combat 'usury' and free peasants from indebtedness were central to the ethical and nationalist movements of the late colonial period. Topics range from the inscriptions of ninth-century Java to the first global financial crisis in 1930, and from Islamic laws against the charging of interest to the role of Chinese temples and Dutch church charities as credit providers. The history of credit and debt in Indonesia is examined from a wide variety of perspectives - legal, institutional, and cultural as well as economic. Attention is paid to parallels and contrasts with more recent developments, including the Asian financial crisis of 1997 and Indonesia's rise to fame as a pioneer of the current global microfinance revolution.

Given the rising criticisms of and growing doubts about globalisation, this timely edited volume looks at globalisation and its economic impact on eight countries in Asia and the Pacific region, namely Australia, China, Indonesia, Japan, Malaysia, Thailand, the United States (US), and Vietnam. The eight selected countries are members of the Asia-Pacific Economic Cooperation (APEC) forum and yet the economies of these member countries have benefited differently from globalisation. This book summarises findings from existing academic literature in a coherent framework and reviews them critically to provide a balanced analysis. It also identifies the mechanisms through which globalisation impacts economies and explains how understanding of such mechanisms can be useful for formulating policies, which would benefit from globalisation while achieving inclusive economic growth in the context of rising nationalism and protectionism. The Open Access version of this book, available at http: //www.taylorfrancis.com/books/10.4324/9781003138501, has been made available under a Creative Commons Attribution-Non Commercial-No Derivatives 4.0 license.

Despite the trend toward financial sector liberalization in recent years, state ownership of financial institutions remains widespread in the developing world. However, in general, state-owned financial institutions have under performed their private sector counterparts, and governments have sought to restructure them. This case study reviews the transformation of Bank Rakyat Indonesia from a loss-producing, overstaffed state-owned bank to the most profitable bank with the largest microbanking network in Indonesia. From the bank's experience the study seeks to draw decisive lessons for the successful transformation of other state-owned financial institutions. For Bank Rakyat Indonesia, the key driver of successful reform was the government's commitment to allow it the autonomy to restructure itself-including an emphasis on good corporate governance, supported by appropriate regulations and effective supervision.

This book presents new data to give an overview of shadow economies from OECD countries and propose solutions to prevent illicit work.

Contributes to a better understanding of the policy, economic, and legal options of countries struggling with debt problems.

An IMF paper reviewing the policy responses of Indonesia, Korea and Thailand to the 1997 Asian crisis, comparing the actions of these three countries with those of Malaysia and the Philippines. Although all judgements are still tentative, important lessons can be learned from the experiences of the last two years.

This publication is a history of the partnership between Indonesia and the Asian Development Bank (ADB). When Indonesia became a founding member of the bank in 1966, the country faced daunting challenges. In the five decades that passed, both Indonesia and ADB have evolved in remarkable ways. Indonesia developed rapidly through the late 1990s yet faced a difficult time of adjustment after the Asian financial crisis of 1997–1998. The country has since resumed growth in the last decade. For its part, ADB has widened its activities in Indonesia, transforming from a project-oriented bank into a broad-based development institution. This effective partnership reflects Indonesia’s success in working with the international community in the past 50 years.

This book examines the dynamics shaping the economic process of economic liberalisation in Indonesia since the mid-1980's. Much writing on the process of economic liberalisation in developing countries views economic liberalisation as the victory of economic rationality over political and social interests. In contrast, this book argues that economic liberalisation should not be understood in these terms, but rather in the way that political social interests shape processes of economic reform in both a positive and negative sense. Specifically, Rosser argues that economic liberalisation needs to be understood in terms of the extent to which economic crises shift the balance of power and influence within society away from coalitions opposed to reform and towards those in favour of reform. In the Indonesian context, the main coalitions that need to be examined in this respect are the politico-bureaucrats and the conglomerates who have generally opposed reform and mobile capitalists who have generally supported reform. Based on extensive original research, and providing much new material, the book considers the politics of economic policy-making in Indonesia in a range of sectors including the capital market, intellectual property law, the banking industry, and the trade and investment sectors. Analysing why the nature of economic policy in Indonesia has varied over time, this study argues that there is nothing inevitable about a transition to a fully-fledged liberal market order in Indonesia, and outlines possible future scenarios for the country's political economy.

"Indonesia is one of the few countries that came through the global economic crisis in 2008-09 with positive economic growth. Despite some recorded positive domestic economic performances, Indonesia faces new challenges as its economy keeps growing and the global economy remains uncertain. A new economic development paradigm is needed to overcome old problems (poverty and unemployment, inadequate infrastructure, corruption, a complex regulatory environment, and unequal resource distribution among regions) with global market opportunities. This book provides a new perspective on how Indonesian’s economic policies should be developed by considering its past and future challenges." - Firmanzah, Professor of Economics and Dean of Faculty of Economics, University of Indonesia "Aris Ananta, Muljana Soekarni and Sjamsul Arifin gather excellent researchers and practitioners to discuss important economic policy issues for Indonesia today. They discuss monetary and fiscal policies and real economic sector issues based not only on theoretical analysis but also on their day-to-day experience in economic management. By reviewing Indonesia's economic policy reform and subsequent Asian financial crisis and sub-prime loan crisis, the authors present a new economic development paradigm and explore economic strategy and policies for the new era. The book offers many timely lessons from history, as well as the real policy experiences of the authors, and guides readers in exploring economic policies under the globalized world economy. This book is very useful for both practitioners and researchers." - Masaaki Komatsu, Professor of Economics, Hiroshima University